LESSON 6 OF 16 · 3 MIN
Reading results and trading updates
IN SHORTResults report revenue, profit and cash. Trading updates say how the year is going. The key question is always: compared with what was expected?
Companies publish full-year and half-year results, and many give trading updates in between. Look for a few numbers first.
- Revenue: money coming in from sales.
- Profit: what is left after costs. Pre-tax profit and operating profit are common measures.
- Earnings per share (EPS): profit divided by the number of shares.
- Net cash or net debt: what the company has in the bank against what it owes.
- Outlook or guidance: what the company expects next. This often moves the price most.
KEY POINTIn line with expectations means about what analysts forecast. Ahead of expectations is good news; below, or a profit warning, is bad news.
Read the opening paragraph and the outlook first. Then check whether the numbers improved on last year and whether cash is coming in.
Try it: Open today's results and compare our AI's take with the original.
Today's announcementsEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.